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Ava Johnson

Can drama students deduct Netflix and other streaming services as research expenses on taxes?

Hey everyone! Theater major here in my junior year, and tax season has got me thinking about deductions. So I've heard that professional actors can write off streaming services like Netflix, Hulu, etc. as "research expenses" when they file taxes since they need to study performances. Makes sense for working actors, but what about us drama students? I'm taking advanced acting classes and constantly watching shows and films to analyze performances and techniques for my coursework. My acting professor literally assigns us to watch specific performances and we discuss them in class. I'm spending like $45/month on various streaming platforms - Netflix, HBO Max, Disney+, and sometimes I rent specific movies that aren't on my subscriptions. I found some info online saying professional actors can deduct: "Tickets to films and plays, and TV streaming services: Actors need to attend plays and movie screenings to keep up with what's going on in their industry. They may also subscribe to services like Netflix and HBO. These expenses are considered to be research." But does this apply to drama students too? Are we considered "pre-professionals" who can take the same deductions? I work part-time and file my own taxes, so this would really help if I could deduct these expenses! Thanks for any advice!

Miguel Diaz

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While I understand why you'd want to deduct these expenses, there's an important distinction between professional actors and students. For tax purposes, education expenses (including related research materials) are generally deductible only if they maintain or improve skills needed in your CURRENT profession - not one you're preparing to enter. Since you're a student preparing to enter the acting profession rather than already working in it, these streaming services would likely be considered personal expenses or educational expenses preparing you for a new career, which unfortunately aren't deductible. The IRS is pretty strict about this distinction. However, if you're already working as an actor while studying (like in paid productions), AND you can establish that these streaming services are directly related to maintaining/improving skills in your current acting work (not just your studies), you might have a case. You'd need to keep very detailed records showing how specific content directly relates to your paid work.

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Zainab Ahmed

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But what if the school requires the streaming services as part of the curriculum? Like if professors assign specific shows/movies to watch that are only available on certain platforms? Wouldn't that make it an educational expense?

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Miguel Diaz

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Educational expenses like required materials for courses are potentially eligible for education tax benefits, but not as business deductions. You might be able to count required course materials (including potentially required streaming services) as qualified education expenses for credits like the American Opportunity Credit or Lifetime Learning Credit, depending on your eligibility. The distinction is that these would be considered education expenses (potentially eligible for education tax credits) rather than business expenses (deductible on Schedule C). The education credits are generally more beneficial for students than trying to take business deductions for expenses related to a profession you haven't entered yet.

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Connor Byrne

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I was in a similar situation last year with my film studies program and found https://taxr.ai super helpful for figuring out what I could actually deduct. I was confused because some of my professors said streaming was deductible while others said absolutely not. I uploaded my subscription receipts and class syllabi that showed the required viewings, and the AI analyzed everything and showed me exactly what might qualify. It turns out the rules are way more nuanced than most people realize. In my case, I learned I couldn't deduct Netflix as a business expense, but some of my expenses did qualify for education credits which ended up saving me about $400. What I liked was that it explained WHY certain expenses qualified and others didn't - gave me the specific tax code sections and everything. Saved me from potentially making a mistake that could have triggered an audit.

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Yara Abboud

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Did you have to pay for the service? I'm a grad student so budget is tight but I've got similar questions about software I use for my design program.

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PixelPioneer

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Sounds like an ad tbh. Did this actually help with education credits specifically? Because education credits have income limits and phase-outs that most basic tax software already covers.

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Connor Byrne

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They have a free option that covers basic questions, which is what I started with. The paid version gives more detailed analysis if you need it, but I got most of what I needed from the free tier honestly. The education credits part was actually where it helped most. I was right at the income threshold where the credit starts phasing out, and it helped me identify some qualified expenses I would have missed (some required software and online access codes for classes). Regular tax software asks about tuition but doesn't always prompt for all the other qualified expenses that count.

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PixelPioneer

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Jumping back in here - I tried https://taxr.ai after being skeptical about it. Honestly it was pretty helpful for my situation. I'm a theater tech major with income from freelance lighting design, and I wasn't sure if my equipment purchases were educational or business expenses. The analysis showed that since I'm actually earning income in my field while studying, some expenses could qualify as business deductions while others should be treated as educational expenses. It created different scenarios showing how each approach would affect my taxes. Saved me from making some claims that probably would have raised red flags with the IRS. For educational expenses specifically, it highlighted that my required production viewings could count toward education credits even though they weren't deductible as business expenses.

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As someone who's worked with actors filing taxes for years, I'll tell you that even professional actors have a hard time with streaming service deductions. The IRS has been cracking down on this area. If you're frustrated trying to get answers from the IRS directly, I'd recommend trying https://claimyr.com - they got me through to an actual IRS agent in about 20 minutes when I had a similar question about entertainment industry deductions last year. You can see how it works here: https://youtu.be/_kiP6q8DX5c My client was a film student who also did professional acting work, and we needed clarity on exactly this question. Having the IRS ruling in writing saved us from making a costly mistake on their return. The agent explained exactly what documentation would be needed to justify the deduction (which was way more detailed than most people realize).

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Paolo Rizzo

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Wait, how does this actually work? I thought it was impossible to get a human at the IRS. Do they just keep calling for you or something?

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Amina Sy

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Yeah right. No way this actually gets you through to the IRS. I've tried calling them dozens of times for a refund issue and never got through. Sounds like a scam to me.

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It uses a system that navigates the IRS phone tree and holds your place in line, then calls you once it reaches a human agent. You don't have to sit on hold - you just answer when they connect you to the IRS person. It's definitely not a scam - it's just using technology to deal with the IRS's understaffed phone system. The service has gotten a lot of media coverage from major news outlets. They don't answer your tax questions themselves - they just get you connected to the actual IRS so you can ask whatever you need to ask.

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Amina Sy

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I need to eat my words about Claimyr. After posting that skeptical comment, I decided to try it for the refund issue I've been fighting with for months. I was fully expecting it to be BS, but it actually connected me to an IRS agent in about 25 minutes. Got my refund issue resolved in one call after trying for MONTHS on my own. The agent I spoke with was actually super helpful once I finally got through to a human. Turns out there was a simple verification issue that no automated system was catching. For the original poster - I specifically asked about student deductions while on the call. The agent confirmed what others have said - streaming services aren't deductible as business expenses for students, but if they're required for coursework, they might qualify as educational expenses for tax credits. You'd need documentation from your program showing they're required.

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Theater professor here. I always tell my students to keep detailed records of ALL performance-related expenses, but be careful about what you actually claim on taxes. The distinction between "required for class" and "helpful for your education" matters a lot to the IRS. For my courses, I provide documentation stating which specific performances/viewings are mandatory for the course. These MIGHT qualify as educational expenses that could count toward education tax credits (though not as business deductions). For everything beyond the specific required viewings, the IRS generally considers these personal expenses. The rules are much stricter for students than for working professionals.

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Ava Johnson

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Thanks for this insight! My syllabi do list specific shows/performances we need to watch for class discussion, but they're across different platforms. Would it help if I got a letter from my department stating these are required materials for my degree program?

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Yes, documentation from your department would definitely strengthen your case if you're ever questioned about these expenses. Ask your department to provide a letter stating that access to these specific streaming platforms is necessary to complete required coursework for your degree. Keep in mind that the IRS might still only consider the portion directly tied to specific required viewings as qualified expenses, not the entire subscription. So detailed records of what you watched for class requirements versus personal viewing would be important.

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Quick practical tip from someone who's been through this: instead of trying to deduct streaming services individually, look at the American Opportunity Tax Credit (if you're in your first 4 years of undergrad) or Lifetime Learning Credit. These credits can be worth up to $2,500 or $2,000 respectively and cover qualified education expenses including required course materials. Much better value than trying to deduct streaming services as business expenses, and way less likely to trigger IRS questions.

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NebulaNomad

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Do textbooks and software count toward those credits too? My tax software never asks about anything except tuition payments.

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Yes! Textbooks, supplies, equipment, and software that are required for enrollment in your courses absolutely count toward these education credits. Many tax software programs don't prompt specifically for these, which is why so many students miss out. Just make sure you have documentation showing they're required for your courses (like a syllabus or course materials list). Keep all receipts and documentation for at least 3 years after filing in case of an audit.

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